The Nike logo will be seen in the Nike store on February 22, 2021 in New York City.
John Smith | Corbis News | Getty Images
Nike on Thursday outlined a five-card plan for creating a more diverse and inclusive workforce, as America is increasingly held accountable for its values and the actions that go along with it.
For the first time, Nike said, it will also commit the CEO’s remuneration to the company, which is making progress in deepening diversity and inclusion in its entire workforce, protecting the planet and promoting ethical manufacturing. It does not provide further details, but says compensation will be conditional on the company achieving its 2025 targets.
“We are proud of the successes we have seen, but we know the work has only just begun,” said John Donahoe, president and CEO, in a letter outlining the five-year targets. “We are also redefining what responsible leadership looks like.”
In outlining the progress Nike made in 2020, the sneaker manufacturer said that the representation of women worldwide increased to 49.5%, from 48% in 2015. Representation of racial and ethnic minorities is meanwhile on the vice presidential level in the United States. The countries rose to 29% last year, from 15.9% in 2015. Nike also emphasized that its 2020 internship class was the most diverse ever, with 55% of its 310 interns being women, and 49% being race- and represent ethnic minorities.
By 2025, Nike said it aims to achieve 50% representation of women in its global corporate workforce (which does not include retailers and warehouse workers), and 45% representation of women in leadership positions (VP level and above). He therefore aims at 35% representation of races and ethnic minorities in his American workforce.
Nike also said it would invest $ 125 million over the next five years to support businesses that create a “playing field” and address racial inequalities.
Last year, after the assassination of George Floyd by a Minneapolis police officer, Nike was one of a number of companies that came behind a social justice movement and undertook to serve communities with a more diverse workforce. In June, it announced a $ 140 million commitment on behalf of the Nike and Jordan brands, and former NBA star Michael Jordan, to support businesses that help educate and promote black Americans.
“Our brand would not be what it is today without the powerful contributions of black athletes and black culture,” Donahoe said in the letter.
However, Nike has come under fire over the past few years for treating women and employees of color.
At the end of July 2018, he announced more than 7,000 employee salary increases and promised to change and how he awards annual bonuses to his global staff, in an effort to address fair equity and corporate culture concerns.
A year later, the terms in new contracts for supporting athletes during pregnancy began to be revised, after being criticized for reducing the payment of some female stars with children.
Nike said data from the 2020 wage balance reveals that women earn $ 1 for every $ 1 earned worldwide. And for every $ 1 that white employees earn in the U.S., employees of racial and ethnic minorities also earn $ 1, he said.
By 2025, Nike promises to maintain a 100% stake at all employee levels on an annual basis.
Read Nike’s full impact report here.